REG - EnSilica PLC - EnSilica awarded initial mandate for telecoms ASIC

EnSilicaAnnouncement

22/12/2023 07:00

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RNS Number : 6971X  EnSilica PLC  22 December 2023

The information contained within this announcement is deemed by the Company to
constitute inside information as stipulated under the UK Market Abuse
Regulation

 

22 December 2023

 

EnSilica plc

("EnSilica", the "Company" or the "Group")

 

EnSilica awarded initial mandate for a high-end telecoms ASIC worth in excess
of US$35m

 

EnSilica (AIM: ENSI), a leading chip maker of mixed-signal ASICs (Application
Specific Integrated Circuits), is pleased to announce that it has entered into
an exclusive and binding Letter of Intent for the development and supply of a
high-end ASIC for use in telecommunications infrastructure (the "Agreement"),
with work commencing next month.

 

The Agreement has been awarded by an established telecommunications equipment
supplier and provides for the commencement of the ASIC specification and then
design phase of the project, ahead of a final contract being entered into for
the full design and supply of the ASIC.   The initial work funded by
non-recurring engineering ("NRE") fees under the Agreement is set to commence
in January 2024 and will be fully funded by the customer, with initial ASIC
production and supply anticipated to begin at the end of the calendar year
2026, subject to final contract.

 

The final contract is currently expected to be worth in excess of an estimated
US$35 million over a ten-year period (including initial work undertaken
pursuant to the Agreement), based on quoted NRE fees and the customer's
minimum projected production volumes.

 

The Agreement outlines the key commercial terms of a final contract, including
the budgetary NRE fees and volume production pricing for the ASIC.  Both
parties have a break option under the Agreement if the final terms of the
contract are not agreed, however, the principal terms are defined in the
Agreement and EnSilica will be paid to commence work next month.

 

EnSilica's extensive experience in developing high-performance Radio Frequency
("RF") and complex digital systems, as well as its strong supply chain
management capabilities, are key factors in EnSilica being selected as the
ASIC partner for this project.

 

This Agreement reinforces EnSilica's standing as a leading European ASIC
supplier, showcasing the Company's continued commitment to innovation and
excellence in the high growth semiconductor sector.

 

The Agreement is one of the potential contracts that was referred to in the
Company's announcement on 14 December 2023.

 

Ian Lankshear, Chief Executive Officer of EnSilica, commented:

 

"As the demand for higher data rates surges and network operators strive to
enhance the power efficiency of their systems, ASICs are key components for
the next generation of terrestrial and satellite telecommunication equipment.
The imperative for a secure supply chain is prompting equipment manufacturers
to commission ASICs, ensuring business resilience and bolstering their
competitiveness. EnSilica's expertise in RF and digital technologies,
alongside our strong supply chain management capabilities, positions us as an
ideal partner for such projects.

 

"This design and supply project is the first step in what we hope will be a
long and mutually beneficial partnership, underscoring our commitment to
ongoing collaboration and innovation in cutting-edge communication
technology."

 

For further information please contact:

 

 EnSilica plc                                                        via Vigo Consulting

 Ian Lankshear, Chief Executive Officer                              +44 (0)20 7390 0233

 www.ensilica.com (http://www.ensilica.com/)

 Allenby Capital Limited, Nominated Adviser & Broker                  +44 (0)20 3328 5656

 Jeremy Porter / Vivek Bhardwaj (Corporate Finance)                  info@allenbycapital.com

 Joscelin Pinnington / Tony Quirke (Sales & Corporate Broking)

 Vigo Consulting (Investor & Financial Public Relations)             +44 (0)20 7390 0233 ensilica@vigoconsulting.com

                                                                   (mailto:visum@vigoconsulting.com)
 Jeremy Garcia / Kendall Hill

 

About EnSilica

 

EnSilica is a leading fabless design house focused on custom ASIC design and
supply for OEMs and system houses, as well as IC design services for companies
with their own design teams. The company has world-class expertise in
supplying custom RF, mmWave, mixed signal and digital ICs to its international
customers in the automotive, industrial, healthcare and communications
markets. The company also offers a broad portfolio of core IP covering
cryptography, radar, and communications systems. EnSilica has a track record
in delivering high quality solutions to demanding industry standards. The
company is headquartered near Oxford, UK and has design centres across the UK
and in Bangalore, India and Porto Alegre, Brazil.

 

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